I have to strongly recommend against putting your recovery catalog in the same database that you will be backing up. If you do this, you will never be able to use RMAN to recovery this database! This essentially makes every single backup you take with this configuration, impossible to use. You will be in a Catch-22 situation when you try to recover and restore your database. You'll need to restore the database to get to your catalog. And you'll need the catalog to restore your database. See the problem?
Please put your recovery catalog in a separate database instance. And this instance should also be on a different server. This has been defined by Oracle IT pros as a "best practice".
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This was first published in October 2002